36.02.02.09

.09 Corrective Action.

A. Deficiency. If the Director determines that a retailer no longer meets a license requirement of this chapter, or that there is cause for imposing sanctions under Regulation .10 of this chapter, the Director shall:

(1) Assess the seriousness of the deficiency;

(2) Require the retailer to develop a corrective action plan;

(3) Determine whether it is necessary during the pendency of the corrective action process to emergently suspend the retailerís license;

(4) Evaluate and, if acceptable to the Agency, approve the corrective action plan;

(5) Determine appropriate timelines for the completion of corrective action;

(6) Conduct periodic monitoring of a retailer for which the Agency required a corrective action plan to assess the retailerís progress toward remedying the deficiencies; and

(7) Recommend that the Commission impose a sanction under Regulation .10 of this chapter if a deficiency is not remedied through implementation of corrective action.

B. Deficiency Notice. Upon determining that corrective action is required to remedy a deficiency, the Director shall give written notice to a retailer that includes:

(1) A description of the violation;

(2) A description of the possible sanctions; and

(3) The requirement for the retailer to submit a corrective action plan to the Director within a time frame established by the Director.

C. Corrective Action Plan.

(1) Within 10 days of receipt of a deficiency notice under §B of this regulation, the retailer shall submit a corrective action plan to the Director for the Directorís approval.

(2) The Director shall review the corrective action plan and inform the retailer whether the corrective action plan is acceptable.

(3) If the retailer fails to submit an acceptable corrective action plan within the time described under §C(1) of this regulation, the Director may:

(a) Provide the retailer with additional time within which to submit a revised corrective action plan; or

(b) Impose a sanction on the retailer under Regulation .10 of this chapter.

(4) If the Director provided a retailer notice under §B(3) of this regulation and received no timely written response, the Commission may adopt as final the Directorís decision to impose a sanction under Regulation .10 of this chapter.

D. Corrective Action Outcomes.

(1) If at any time during the corrective action period the Director determines that the retailer has failed to fulfill a requirement of the corrective action plan or has made insufficient progress toward remedying a deficiency, the Director may:

(a) For good cause, extend the time for completion of a corrective action plan; or

(b) Emergently suspend the retailerís license.

(2) If at the end of the corrective action period the retailer has failed to adequately remedy a deficiency, the Director may impose a sanction under Regulation .10 of this chapter.